Family Survival Farm-Blog. Survival, homesteading and more: Innovation is Running the Agribusiness Industry in Kenya

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Tuesday, June 20, 2017

Innovation is Running the Agribusiness Industry in Kenya

Farming in Kenya is no longer a
preserve of the poor subsistence farmer in the rural set-up. Young people have
turned to agriculture as a way of earning an income. In the past, food
production has been limited to producing just enough to feed the family and
maybe selling the surplus to raise school fees for the children. The young
people in Kenya, on the other hand, are taking farming as a business. Reducing
production costs, getting high returns, and solving issues to do with reaching
the marketplace on time are on top of their list. Many graduates are snubbing
formal employment to try their hand at farming, and many are reaping the fruits
of their labor and smiling all the way to the bank.

Innovation

As you can imagine, innovation
has taken center stage to cater to these budding entrepreneurs. No longer is
land just being marketed as land. Players in the real estate sector have come
up with products tailor-made to attract the youth. Most of the land being sold
in the country is coming with the option of having a greenhouse set up and
managed such that you get additional income even as you plan your next move.
You, therefore, earn from farming without worrying about your purchased land
lying idle as you plan your finances.

Banking Innovation

Banks have not been left behind.
In the past five years, almost all banks in the country have come up with a
banking product targeted at the young farmers.
Agricultural loans are now a normal feature in the banking industry yet
it was unheard of before. But what would you do as a bank if more and more
young people are walking into your banking halls asking for agricultural loans?
After turning away these youthful farmers for years, the banking sector had to tow
the line since they were losing money. A banking product for these youth had to
be created since they lost most of them to saccos that were willing to fund
their agricultural ventures.

Insurance Innovation

Do you know that for the longest
time no insurance company offered insurance products to serve Kenyan farmers
and this resulted in massive losses for the farmer in case of droughts and
floods? The young, educated farmer demanded insurance for their crops and
animals just like any other business. Insurance firms had to listen since the
amount of money flowing in the agricultural sector could no longer be
ignored.

Technology for Agriculture

Technology has not been left
behind either. Apps for marketing agricultural produce and linking farmers with
information on the weather and other such factors are now available on the
phone. Farmers now have access to crucial information that could affect their
farming ventures. They are also able to eliminate middlemen and reach the
market directly which earns them more returns. Apart from individual apps,
social media platforms such as Facebook, Twitter, LinkedIn, Instagram, and the
likes are being utilized by the Kenyan farmer to reach their markets not only
within Kenya but across the globe.

Investing in agriculture in Kenya
right now is a great move. There are risks involved just as in all other
businesses, but agribusiness has never been this vibrant in the country before.
The government has even stepped in to encourage the private sector to invest
more in the agricultural sector.